Anglo-French Paper Group Arjo Wiggins Appleton Wins €42.5 Million Fine Reduction

April 26, 2007

Cleary Gottlieb won a European Court of First Instance appeal for the Anglo-French paper group Arjo Wiggins Appleton Ltd. (“AWA”), in a dispute over a fine imposed by the European Commission for alleged price-fixing and market-sharing in the carbonless paper sector. The CFI ordered the fine to be reduced by €42.5 million on April 26. This is one of the largest fine reductions by the CFI in recent years.

The dispute began in 2001, when the European Commission imposed fines on ten carbonless paper manufacturers to sanction their participation in collusive arrangements. All manufacturers but one appealed the Commission’s decision to the CFI. The CFI upheld AWA’s claim of breach of equal treatment in the Commission’s assessment of its cooperation under the 1996 Leniency Notice and adjusted the fine accordingly. In contrast, none of the other applicants benefited from a significant reduction in fine.